Given the following sample data, calculate the performance measures for portfolio P and the market (Sharpe, Jensen/Alpha and Treynor. The T-bill rate during the period was 6 %). By which measure did portfolio P outperform the market?                                                                   Portfolio P                 Market M Average return                                             35 %                           28 % Beta                                                            1.2                               1.0 Standard deviation                                      42 %                           30 %

Given the following probability distribution, what are the expected return and the standard deviation of returns for Security J? State Pi ri 1 0.5 11% 2 0.3 8% 3 0.2 5% O 9.40%; 2.04% O 8.90%; 2.34% O 7.40%; 2.94% O 8.40%; 2.64% O 7.90%; 1.74%

uppose the average return on Asset A is 7.1 percent and the standard deviation is 8.3 percent, and the average return and standard deviation on Asset B are 4.2 percent and 3.6 percent, respectively. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel® to answer the following questions.   a. What is the probability that in any given year, the return on Asset A will be greater than 12 percent? Less than 0 percent? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the probability that in any given year, the return on Asset B will be greater than 12 percent? Less than 0 percent? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. In a particular year, the return on Asset A was −4.38 percent. How likely is it that such a low return will recur at some point in the future? (Do not round…

Example:  Consider the following data for a particular sample period:     　 Portfolio P Market M Average return 35% 28% Beta 1.20 1.00 Standard deviation 42% 30% Nonsystematic risk, σ(e) 18% 0  The T-bill rate during the period was 6%.  A) Calculate the market and portfolio returns using sharpe's measure, treynor's measure, jensen's measure and information ratio B) Compare and comment on results of each measure.